SINGAPORE: Application Guidelines for Family Office Tax Incentives Amended
27 April 2022
Family offices in Singapore face stricter tax incentive criteria, after the Monetary Authority of Singapore (MAS) revised its requirements in S13O & S13U Application Process for Family Offices – Guidelines for Advisors, released on 11 April 2022. The new rules, which apply to Section 13O and Section 13U of the Income Tax Act, entered into force on 18 April 2022. Changes include increased minimum assets under management (AUM), employing investment professionals, and spending on local investments.
Under Section 13O, family offices must have at least S$10 million (US$7.3 million) when applying and increase AUM to S$20 million within two years. They must hire at least two investment professionals, paid at least S$3,500 monthly. The funds must also make local investments of 10% of the AUM or S$10 million, whichever is lower. Family offices must also have a minimum operations expenditure of S$200,000 annually.
Under Section 13U, fund management must be advised by at least three investment professionals, one of whom must be a non-family member. Local investment must be at least 10% of the AUM or S$10 million, and annual local business spending at least S$500,000. The minimum AUM remains S$50 million.
- Finance & Investment
- Southeast Asia